Including XRP in the reserve has ignited a debate between Bitcoin and XRP supporters, as industry experts emphasize the fundamental differences in their philosophies.
U.S. President Donald Trump has announced on Truth Social the creation of a U.S. Crypto Strategic Reserve, including major cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Solana (SOL), and Cardano (ADA). This move has shaken the crypto market and fueled a heated debate over XRP's inclusion in the reserve.
Trump first introduced the idea of a national crypto reserve at the Bitcoin 2024 conference, vowing to protect the government's Bitcoin holdings. The concept gained momentum when Senator Cynthia Lummis proposed a National Strategic Bitcoin Reserve. As we highlighted in a previous article, Trump solidified his stance by signing an executive order, directing the President's Working Group on Crypto to explore the creation of a national digital asset stockpile.
Trump emphasized the significance of the U.S. Crypto Strategic Reserve, stating:
A U.S. Crypto Reserve will elevate this critical industry after years of corrupt attacks by the Biden Administration, which is why my Executive Order on Digital Assets directed the Presidential Working Group to move forward on a Crypto Strategic Reserve that includes XRP, SOL, and ADA.
In a follow-up post, he reinforced Bitcoin and Ethereum's importance in the reserve, adding, "And, obviously, BTC and ETH, as other valuable cryptocurrencies, will be at the heart of the Reserve. I also love Bitcoin and Ethereum!"
While Bitcoin's place in the crypto reserve was widely expected, XRP's inclusion has ignited a heated debate within the industry. Bitcoin proponents have questioned the rationale behind an XRP reserve. Economist Peter Schiff, a well-known Bitcoin critic, expressed skepticism, stating, "I get the rationale for a Bitcoin reserve. I don't agree with it, but I get it. We have a gold reserve. Bitcoin is digital gold, which is better than analog gold. So let's create a Bitcoin reserve too. But what's the rationale for an XRP reserve? Why the hell would we need that?"
Coinbase CEO Brian Armstrong also argued in favor of Bitcoin, stating that it would likely be the best option as the simplest and clearest story as a successor to gold. He suggested that if a more diverse approach were needed, a market-cap-weighted index of crypto assets could be used to maintain fairness and neutrality.
On the other hand, XRP supporters strongly defended its inclusion. Charles Hoskinson, founder of Cardano, directly responded to Schiff's criticism, saying, "Because XRP is great technology, a global standard, survived for a decade through many harsh cycles, and has one of the strongest communities. I think the president made the right decision."
With Trump positioning the U.S. as the "Crypto Capital of the World", the debate over which digital assets deserve a place in the government's reserve is just getting started. Whether XRP will prove its worth in this new era of government-backed crypto holdings remains to be seen.